NFP: Sluggish job recovery undermines dollar, gold positive

FXStreet Team FXStreet

The US economy gained 1.763 million jobs in July while the unemployment rate stands at 10.2%. Slow hiring trend is downbeat for the dollar and good for gold, FXStreet’s analyst Yohay reports.

Key quotes

“America gained 1,763 million jobs in July, 1.462 million in private payrolls, both better than expected – but a significant deceleration from June's 4.791 million jobs. Overall, there still are some 10 million people who have not returned to work. Job restoration is slowing down.”

“The current broad dollar downtrend could continue as other countries seem to be moving up and not down. Gold has room to extend gains amid speculation of further monetary and fiscal stimulus.”

Author

FXStreet Team

FXStreet

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Australia CPI to highlight persistent price pressures, backing a hawkish outlook

Australia will release its key set of inflation figures for the month of January on Wednesday, with the Consumer Price Index expected to rise by 3.7%, slightly lower than the 3.8% in the last month of 2025.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.